Slovakia
With four car manufacturers and 1.15 million cars produced in Slovakia in 2019, Slovakia was the world leader in per capita auto production for the sixth year in a row. In 2019, automotive production represented about 13.9 percent of Slovakia’s GDP, 49.5 percent of Slovakia’s industrial production and 46.6 percent of country’s industrial exports. Over 340 Tier 1 and Tier 2 auto suppliers, providing parts and subassemblies to clients throughout Europe and beyond directly employed 177,000 people, while the total number of people employed in the automotive industry was 275,000. Though the 2020 statistical data is not publicly known yet, it is expected that due to COVID-19 crisis the industry production dropped by 10% and that the whole industry dropped by 20%.
Summary
Market Entry
Market success depends on in-country presence (such as an agent, importer, distributor, franchisee) and price. U.S. companies wishing to use distribution, franchising and agency arrangements need to ensure that the agreements they put into place are in accordance with European Union (EU) and Slovak national laws. The Slovak Commercial Code closely follows EU legislation and recognizes agents, commissioned merchants, and brokers not bound by contract.
American exporters of vehicles, original equipment parts & components, aftermarket products & accessories to EU are subject to certification for quality and safety (i.e. regulatory requirements on technical norms and standards, environmental impact) conformity with existing European Commission Directives by a notified body in any EU member State. Once approval is granted, it should be accepted by all member states across the EU. Yet, individual member states may enforce more strict or additional regulatory requirements for specific product groups. In general, there are no other trade/import restrictions other than import duties. Since these may be subject to change, please see TARIC, the integrated Tariff of the European Union for relevant information. A certified management system is required for access to new markets and customers in Slovakia and Europe.
Current Market Trends & Demands
2020 car sales dropped by 31% on average. As of December 31, 2020, there are 2,373,264 M1 cars (3,357,777 vehicles) registered at the Slovak Ministry of Interior. Slovaks own less cars per 1,000 inhabitants compared to other EU nations. While in the past this trend was determined by weak purchase power, nowadays it is caused by changing consumer behavior and shared economy.
Based on the approved EU’s Mobility Strategy Slovakia through Slovak Ministry of Economy implements “ The National Policy Framework for Alternative Fuels Market Development" which indicates the target to have 35,000 E- vehicles and plug-in hybrids by 2030 on the Slovak roads and 1,500 racks for medium-fast charging (up to 22 kW) and fast charging (above 22 kW) by 2025.
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